Copenhagen Infrastructure Partners (CIP) has entered into an agreement to restructure its US offshore wind joint venture with Avangrid Renewables, a subsidiary of Avangrid. The restructuring will allow CIP and Avangrid Renewables to focus on their own expansion plans in the US offshore wind market and better align project timelines with the sponsors’ strategic objectives.
Following the restructuring, CIP will become the 100% owner of lease area OCS-A 522, which can accommodate up to 2,500MW of offshore wind power, and Avangrid Renewables will become the 100% owner of lease area OCS-A 534, containing the 804MW Park City Wind project and the prospective 1,200MW Commonwealth Wind project. Given the more advanced development status of Park City Wind and Commonwealth Wind, CIP will also receive a net payment of $167.5 million by Avangrid Renewables at closing, expected in the next six months. CIP will also be looking to secure more offshore wind capacity through the upcoming lease auctions to be held by BOEM in the New York Bight area and California.